U.S. Attorney for the District of Columbia Jeanine Pirro on Friday announced that the Department of Justice (DOJ) end its criminal investigation into Federal Reserve Chairman Jerome Powell and refer the matter to the Inspector General.
The DOJ’s criminal investigation focused on whether or not Powell made false statements to Congress about cost overruns in the ongoing renovation of the Federal Reserve’s headquarters during a Senate Banking Committee meeting last June. The cost of the project in question was initially estimated at $1.9 billion, but has since grown to $1.9 billion appreciated $2.46 billion. In his statement, Powell denied that the renovation included luxury features. Information“There is no VIP dining room. There is no new marble. There are no special elevators. There are no new water features, there are no beehives and there are no rooftop gardens.”
Planning documents Documents submitted to the National Capital Planning Commission in 2021 challenge these statements. An excerpt reads: “Private dining rooms on Level 4 of the Fed’s Eccles Building will be restored” and “The Governors’ private elevator will be expanded to discharge at the dining room level.” Under 18 U.S. Code § 1001It is a felony to knowingly and intentionally make false statements to Congress, punishable by up to five years in prison.
Powell announced in January that grand jury subpoenas had been served on the central bank. Chief Judge James Boasberg of the U.S. District Court for the District of Columbia lifted The Justice Department’s March subpoenas stated that “the government has presented no evidence that Powell committed any crime other than displeasing the President.” Judge Boasberg then denied the government’s request for reconsideration in April.
Powell has described the investigation as a politically motivated pressure campaign. Former Treasury Secretary and Fed Chair Janet Yellen has also done so criticized the investigation, He said this threatened the central bank’s independence. Proponents of the investigation, led by Rep. Anna Paulina Luna of Florida, who filed a criminal complaint with then-Attorney General Pam Bondi last July, argue that Powell “knowingly misled both congressional and executive officials” and that “a senior Fed official should not be permitted to make false statements under oath at a congressional hearing.”
With Friday’s announcement, the criminal chapter of the dispute is closed for now, as Pirro notes that she “will not hesitate.” to reopen a criminal investigation if the facts warrant it.”
The matter now moves to the Fed’s Office of Inspector General checked The 2021 renovation project resulted in suggestions for improvements but found no evidence of fraud or criminal behavior. Inspectors general are independent officials in government agencies who investigate mismanagement, waste and fraud. Friday’s announcement also removes an obstacle that had blocked the Senate’s confirmation of Kevin Warsh, Trump’s nominee to replace Powell, whose term expires in May. Senator Thom Tillis of North Carolina, a member of the Senate Banking Committee, had vowed to block Warsh’s confirmation until the criminal investigation was closed. tell Warsh at his confirmation hearing this week: “Let’s get rid of this investigation so I can support your confirmation.”
